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Article Title:
Determinants of Seasonal Loan Default among Beneficiaries of a State Owned Agricultural Loan Scheme in Uasin Gishu County, Kenya
by Josephat Cheboi Yegon, Josphat Kipkemboi, Josphat Kipkorir Kemboi and Kenneth K. Chelimo

Abstract:
This study analyzed the determinants of seasonal loan default by small scale farmers in Kenya. It specifically identified socio-economic characteristics of the respondents and quantitatively determined some socio-economic characteristics of these farmers that influence loan default. The study employed a stratified random sampling technique to select 272 small scale farmers who took seasonal loan of AFC in the period 2005 to 2010 in Uasin Gishu County. Descriptive statistics was used to analyze the socio-economic characteristics of the respondents. Cross tabulation was used to present a summary of data related to the determinants and logit regression analysis, quantitatively determined the probability of default given the factors that influence loan repayment among the respondents in the study area. The results of the logistic regression indicated that personal factors and facility factors are both significant at 1% and farming conditions are not significant. These results show that measures to lower loan default should focus more on personal and facility factors rather than farming conditions.

Keywords: loan default, determinants, farmers, afc & uasin gishu county

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